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Supply Chain Management (SCM 3660) Chapter 7

Sandra Watson
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Appalachian State University

Supply Chain Management (SCM 3660)

for a shoe shine​ process, the following functions have been​ identified:

1. Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for
a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume
increased next year. Borges has developed costs for three alternatives. They are general-purpose
equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated
machine (DM). The cost data follow:

Low-volume, high-variety production is best suited for which of the following process strategies?

What is the ability to respond with little penalty in time, cost, or customer value?

For a shoe shine process, the following functions have been identified:

If one was to prepare a process chart for the above identified functions then:



Supply Chain Management (SCM 3660) Chapter 7

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